In many areas, small businesses are required to carry liability coverage. However, there are very few property insurance requirements. That can leave owners wondering if they need to purchase small business hazard insurance. Keep reading to learn more about this coverage and how it can help your business.

What Does Hazard Insurance Cover?

Unlike liability coverage that protects you from injuries or damage to third parties, business hazard covers your company property against damages from named causes. That might include things such as vandalism, theft, fire, or a power surge. Many policies exclude damage from flooding, earthquakes, or acts of war, but you should check with your insurer to learn about your policy’s exclusions.

Why Should My Small Business Have Hazard Insurance?

While there are not usually legal requirements to carry small business hazards insurance, there are many advantages to having a policy. A major benefit is that your personal and business property is covered for many common types of damage. It can help replace tools and equipment that are lost or damaged as well as help rebuild destroyed buildings. Additionally, hazard insurance may be required for certain Small Business Administration programs, such as Paycheck Protection plan loans.

Not every business is required to have hazard insurance. However, since it covers business and personal property, it can be good to have. Talk to an insurance agent to determine if you should invest in a policy.